Answer-“RBI tightens Rules for JLFs” was the headline recently in many newspapers. What does JL...

JLFs are meetings held to revitalise stressed assets. In JLF banks attempt to red-flag stress early and check them by putting in place a corrective action plan CAP. RBI has lowered the threshold needed for implementing the corrective action plan CAP. Now, the decisions agreed to by a minimum of 60 of creditors by value and 50 of creditors would now be valid to implement the CAP. Decision taken by the JLF would be binding on all other lenders.